I don’t even think wrapping is necessary if you have a decent butt with a good amount of fat on it. They are much easier to smoke and get a good result than briskets are. In fact, I’ve done a few butts and I don’t think I wrapped any of them and was happy with the result each time (I may have injected them … I can’t remember; possibly once or twice but not each time).
But if you really want to wrap it, I don’t see why butcher paper would be problematic. It would probably enable you to keep a better bark than foil would.