It would not surprise me if it were ceremonial in nature, if for no other reason than a little mask on the handle wouldn't be very practical (or long-lasting) on a working knife.
If I am not mistaken, the Tlingit use specific iconography in their mask and totem carving to represent particular spirits. One would expect that these mini-masks conform to this, so I wonder which spirit is depicted in yours and the one from Sotheby's? Each spirit watches over a different aspect of life (or death), and the identities of these particular ones might give some insight as to the ceremonial function of the knives.
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