Yes, Shuttle can transfer digital products to Etsy. When you transfer a digital Shopify product, Shuttle creates a digital listing on Etsy, not a physical one. Every transfer creates a draft listing on Etsy, and digital products are no different.

See Transfer products between Etsy and Shopify.

Shuttle treats a Shopify product as digital when none of its variants is set to need shipping in Shopify. If even one variant needs shipping, the whole product goes to Etsy as a physical listing.

So before you transfer a product you want listed as digital, turn off shipping on every one of its variants in Shopify.

No, Shuttle does not upload downloadable files to Etsy. It transfers the product's listing details, but you add the files buyers download yourself, in Etsy.

Once the transfer finishes, open the draft listing in Etsy, add your files and publish the listing when it is ready.

A digital Shopify product with several variants needs the Transfer digital products as single variant setting, because Etsy does not support variations on digital listings. With the setting on, Shuttle sends only the first Shopify variant to Etsy and fills the listing in from that variant's details.

The Transfer digital products as single variant setting only changes digital products. Physical products keep all their variants.

Shuttle checks whether a product is digital each time it updates the Etsy listing. If a Shopify product becomes digital, the next update makes its Etsy listing digital too.

Once a listing is digital on Etsy, Shuttle's updates keep it digital, even if the Shopify product later needs shipping.

You can stop stock syncing on digital products, which helps when their quantities do not mean anything to you.

See Excluding Digital Products from Stock Syncing.