Jesus was baptized to fulfill the Law. How did he "sanctify water by his baptism"? Jesus was also baptized in holy Spirit - that is what gave him the power to endure temptation and live a sinless life. It 'signifies' - yes that is what it does and what it is - a 'symbol'. When you were born again; you were washed in living water via the holy Spirit. The spirit was born within you as a new creature, the new man - Christ in you the hope of glory. Hallelujah! Just as God was in Christ reconciling the world unto himself - Now it is God in Christ in us and we have that ministry of reconciliation in Christ's stead!!!!Jesus was baptised for two reasons. One to fulfill a prophecy, but the most important to sanctify water but the material world which He is about to redeem from death. It is why water has life. Water in our fonts have been sanctified for that use. That is part of the continuation of the consecration of bishops and priests in sharing that authority with Christ.
John3:5 is the sine quo non definition of baptism in scripture. It signifies entrance into Christ. Which is why it is required for salvation. Unless you can find a substitute in scripture for entrance into Christ, or that one does not need to be IN Christ in order to be saved.
Which is why every single mystery/sacrament is salvific. Protestants have adopted the Zwingle meaning of all sacraments, which is a Gnostic understanding. An understanding also that does not recognize the Christ redeemed the material world as well as mankind, since both suffered the condemnation of death through Adam.
Christ was redeemed for the whole world, Christ paid the ransom for all - but the only ones that receive the redemption and ransom are those that believe that Jesus is the only begotten Son of God.
BTW - I don't know what "Zwingle" means and probably don't want to know.