How could I make a simple material that had those physics in water and reacted with the boat like in GTA San Andreas (Video attached)?

Development Programming & Scripting Blueprint
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Not sure how to do the physics part, but the visual effect at least is covered here:

Guy also touches on how you could do the physics near the end of the video but it’s a purely theoretical description of the ideal way to do it (lots of math).

That youtuber has a lot of good vids about water materials.

Here is an alternative approach (using the water plugin to simulate things)

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In general, if you want player-location based effects with history, you will want to use a render target of some sort, and use something like the Draw Material to Render Target node. The material in turn will be an additive material that adds “player is here” data to the target. Fade the target towards black for older locations.

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Thank you both very much @Cestarian and @jwatte ! I decided to try Epic’s Water plugin but I want to… let’s say… destroy the water and make it PSX style. Do you guys know how I could apply an opaque texture on top of the waves? Something like this:
https://www.reddit.com/r/ps1graphics/comments/1bcfcoe/psx_water_shader_in_unreal_engine/