If you plan to sell the MF to buy ETFs, definitely transfer in cash. Save the commission to sell in your self directed.
Could you please elaborate on this?
If you transfer in kind, you'll end up with a load of stuff in the destination you don't want, and will then have to sell. If you transfer in cash, the sending organisation liquidates (ie, sells) everything and sends cash. You end up with a pile of cash to invest, without having to sell the old stuff first (which will cost you $x/trade).