The dot-cursor (pointer) represents the effective touch-point when using a TrackPad or Mouse with your iPad. The dot-cursor is visible when actively using a TouchPad or a Mouse with iPad. The cursor will automatically disappear when input from the TouchPad/Mouse ceases - typically within a few seconds.
If the cursor does not disappear, check the Pointer Control setting:
Settings > Accessibility > [Physical & Motor] Pointer Control > [Appearance] Automatically Hide Pointer - set to ON

If you upgrade to iPadOS 26, the dot cursor is replaced by an arrowhead - with many more options for controlling the on-screen appearance.