Yes butternut squash seeds from the butternut squash will germinate and grow more butternut squash.
That's the point of the seeds to begin with.
The seeds are there to get into the soil and make more butternut squash from those seeds.
You can start the butternut squash seeds from the butternut squash indoors and then by spring time or when the frost is over you can plant them outdoors and enjoy some more fresh butternut squash.