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Heya, Dean!
The German
stielhandgranate (stick hand grenade) or potato masher used a friction fuse... a length of wire coated in abrasive material that was surrounded by a sensitive ignition compound that also provides the delay. The wire is yanked, the compund sparks up, and voila... very much like a strike anywhere match. The Germans were pretty much the only ones to use this type of fuse after the early days of the Great War.
Here's a link that might explain it a little better:
German Stick Grenades, WWII - Inert-Ord.net
I recall reading various versions of someone pulling the pin on a grenade, and it sputtering and smoking as it was thrown. I can picture a potato masher doing this, but it would be pretty much impossible to hear any other 20th century grenade do this. Grenades before the 20th century (bombes) would sputter and smoke, they were nothing more than a metal or ceramic vessel with a length of cannon fuse hanging out.
Quick clarification: there are things grenade-like, smoke grenades, flares, some pyrotechnics, that might also sputter or smoke, but most all explosive grenades use internal, percussion type fuses... nothing to see or hear.
Probably a fair amount of "artistic license" combined with ignorance of how things actually function.
Hope this helps!