“And the Spirit of God was hovering over the face of the waters.”
This is a Day 1 scenario. We know that light will be unveiled, and we know that Day 1 corresponds with Day 5 and Day 7, thus solidifying the connection between the Spirit’s work and judgment. When God sees, He judges. Making light is connected with that seeing. In fact, the two words are plays on one another in Genesis 1 as “light” is AR and “see” is RA.
And so we see that the Spirit and the Water work together in judgment to create something new. This will be a continuing theme all throughout the Bible, and when Jesus comes to baptize with fire (light), we shouldn’t be surprised to see him using the water.
Heavenly fire will become water in other places as well. The fire comes down to lick up Elijah’s water-altars, but in the New Testament the fire comes down on the Apostles and they retain their water. They proceed to fire-baptize people all throughout the book of Acts. When God baptizes Jerusalem in AD 70, His fire is present.