For that you would need a 3D modeling program or be a super expert and have lots of time to do it with Nifskope.
nah. it would take 5mins in nifskope maximum. using a 3d prog would take longer just to load the program and import the object, then you'll have to go through all the export set up and post export set.
do it in nifskope, its just basics. it'll take me as long to post this message as it would do to all this
rightclick the nitristrip>transform>edit. edit scale. 0 xyz is where the weapon bone attaches to the knife in game. this is the point in the middle of the hand. so prehaps move the knife again by editing the translation. then rightclick the nitristrip>transform>apply.
delete the collision shape. rightclick it, block>remove branch. leave this nif open...
open the baton.nif weapon nif. steal the capsule shape collision from this.
rename the root node to match your knife nif, so you don't get the failed to map parent error. or just unhook it from being the collision object of scene root node
rightclick the collision block> block>copy branch
back to the knife nif
rightclick the scene root>block> paste branch
hook it up as the collision object of the scene root.
fiddle with size of capsule to suit.
save