Birchwood Casey Tru-Oil
It's a linseed oil/varnish blend that is often used on gunstocks. The walnut gunstocks I've seen with Tru-Oil have come out superb. If you add many coats it will get shinier and form a film, but that's after a lot of coats. Wipe on a coat with a rag, wait a minute or so and rub it off with a clean rag. Do this over a few times until you get the look you like. If it's too shiny, hit it with some 00 steel wool or a fine scotch pad. You can find it in many sporting goods places that sell firearms.
It's great stuff. If it's meant to be used on a shotgun in the rain, snow, generally lousy weather, it'll be perfect for a knife handle. I love the stuff.
Also, be sure to lay out any rags you use until they are dry. Crumpled up oily rags can spontaneously combust. No sense in burning down your shop.