The most common and most likely answer to this crossword clue is the 5 plus 7 letter word WHITE ADMIRAL
I've seen this crossword clue in The Times
W
H
I
T
E
A
D
M
I
R
A
L
Buddy explains!
The straight part
We know that "a butterfly" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case a butterfly = white admiral.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.