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Can they be used like frag grenades and make you strike at initiative 10 in cover?
I don't believe so. Looking at the BGB, page 39, it explains how grenades are just assumed to be a part of assaults and melees, except for three grenade types that give a 'special benefit' - frag, plasma, and photon. The I 10 benefit for frags is named here. Kraks aren't mentioned, so no special benefit...although I don't think they deserve to be as panned as they usually are around here.
Does the rule book say anything about them doing this? No. Read your rule book.
Krak grenades are like meltabombs, except they cost less, have a lower strength, and dont get as many extra D6 when rolling for armour penetration. Like the Meltabombs though, they can only be used on armour.
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Okay thanks guys for clearing that up.