Shinnie, 23, secured a move to Birmingham on a three-year contract on Monday before being named on a four-man shortlist for the PFA Scotland player of the year award.
"It's an indication of what can happen here," said Butcher, whose team could go a long way towards wrapping up a top-three finish in the SPL by beating St Johnstone on Saturday.
Shinnie has netted 15 goals from an advanced midfield role this season, also making his Scotland debut in a friendly win over Luxembourg in November.
But less than two years ago he was without a club after being released by Rangers.
"He plays a trial game here, we get him on a two-year deal and he's been fantastic for us. And he's now got a good move to Birmingham. We'll wish him well then but there are still four games to go and he can have a major impact on how we finish and where we finish."
Shinnie faces competition from three strikers for the award - Motherwell's Michael Higdon, Hibernian talisman Leigh Griffiths and Niall McGinn of Aberdeen.
Butcher said: "I'm surprised there's no Celtic players there but it's down to the players an their choices and I'm delighted Andy is there.
"When you get something like that it reflects well on the whole club let alone the team and Andrew Shinnie.
"He's been backed up by a wonderful team that enjoys the way Andy plays and wants to give him the ball. He's been responsible for some magic moments."