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Preheat air fryer to 350°F.
Separate biscuits and use a small cutter to cut out 1" circles. If you do not have a cutter, cut the biscuits into 6 pieces each and gently roll them in your hands.
Place in a single layer in the air fryer. Cook 2-3 minutes or until golden and cooked through.
Drizzle donut holes with some of the butter and shake the bowl to coat them.
Place cinnamon sugar in a bowl with a lid or a freezer bag. Add warm buttered donut holes and shake to combine. Serve warm.