Thanks for your replies guys. Wheel hop does sound like the right diagnosis, it was just weird as none of my earlier cars have had wheel hop in similar conditions. (z3m, 330ci) I suppose it's the M3's suspension combined with the lsd.
Will mention it at the dealership tomorrow and ask them to verify everything is tight and good to go in the diff and rear suspension. As I mentioned its not normal for me to do burnouts, the wheel hop only happened during rainy slippery conditions.