Its a white powder that is mixed with resin to thicken it up, it doesn't dissolve. The more you mix in, the thicker it gets. Then the resin hardens, trapping the cabosil inside.
 
The reason I ask this is because it seems to disappear after being mixed for a few minutes.

On a microscopic scale the Cabosil is rough, so to your eye it has a 'frosted glass', or white, appearance. But once wetted, the index of epoxy and Cabosil are close enough that there is little reflection, so it's very hard to see.
 
On a microscopic scale the Cabosil is rough, so to your eye it has a 'frosted glass', or white, appearance. But once wetted, the index of epoxy and Cabosil are close enough that there is little reflection, so it's very hard to see.

Thank you! I could not figure out how it could disappear if it did not dissolve.