Requesting advice on increasing Etsy Ads budget

Hey everyone! I’m currently running Etsy Ads at $100/day promoting about 100 of my 650 listings (mostly the ones with consistent past sales). I sell personalized jewelry gifts, and with the holiday rush coming up,my supplier cut-off is Dec 18 so I’m considering bumping my ad spend to $1,000/day from Dec 1–18.

Do you think it’s smarter to:

(1) Scale up the budget incrementally like $150 per day, observe then $200 per day, observe and see if I am getting sales this way?

OR

(2)Turn on ads for all 650 listings with $1000 per day ad budget during the Christmas season and let Etsy optimize?