Let him sleep in the crate with the door open, eh, or just take the door off. If the bed will fold to fit in the crate, that could make it more comfortable. Alternatively, get a smaller blanket and lay it on the floor of the crate. After a few days or weeks he'll associate that blanket with the safety of the crate. His scent will be thoroughly rubbed in. Then, you can try moving the blanket to his doggie bed and gradually transfer the good feelings of the crate over to that bed.
One of my dogs, our first, doesn't like to sleep out in the open. When we transitioned her from the crate she took to sleeping under the bed. She just needs that feeling of security, I guess. Yours may be the same way.
While she still used the crate, I kept it in the living room, just your ordinary folding metal crate. I put a sheet of board on top and covered the whole contraption top and sides with a big tablecloth, so for all purposes it became an end table. If I'd had the time I could have built and stained a proper tabletop and sides to fit right over the crate, but a nice tablecloth worked just fine. If you have the space you could do something similar. The crate becomes just another piece of furniture for you and a safe spot for the dog.