Combine yeast, water, and ½ teaspoon sugar in a small bowl. Let sit for 5 minutes.
Combine 1½ cups flour, 1 tablespoon sugar, 1 teaspoon salt, xanthan gum, and butter in a large mixing bowl. Cut in butter with pastry cutter or fingers until mixture resembles coarse meal. Add yeast mixture and stir until well combined. Add remaining 1½ cups flour and mix to combine.
Pour out on a surface and knead a few times to make a smooth dough. Place dough in a large, well-greased bowl (I sprayed mine with cooking spray) and cover. Let rise in a warm place, free from drafts for 60 minutes.
Preheat oven to 475°F and spray your baking sheet with cooking spray. Divide dough into 5 or 6 pieces (or if you like, you can make the pretzels a bit smaller like I did; I think I ended up with 8-10 pieces).
Knead pieces in your hands until nicely smooth. Roll each piece into a 16-18-inch length and form into a pretzel shape.*
In a non-aluminum pot, bring water to a boil with baking soda. Add pretzels, two at a time, and boil 1 minute. Use a slotted spoon to lift the pretzel out, and shake off excess water. Place pretzels on a baking sheet.
Using a pastry brush, spread melted butter on the pretzels and top with coarse salt. Bake at 475°F for 10 minutes or until golden brown. Once out of the oven, drizzle with honey. Voila! The perfect, gluten-free, honey butter pretzel!